Denninger and the Dennizens of Ticker forum also think that banks profit from inflation, specifically, the attempted re-flation of the deflating housing market. It's the only way the Too Big To Prosecute Banks & the Bernank can get the garbage mortgages back to the point where they can put them back on their books.
Also, Denninger doesn't believe that he knows what the total June 2011 treasury holdings of China & Japan will be, unlike others who shall not be named...
My bank recently gave me a 30 year mortgage at 4.75%. Which of the following scenarios is my bank hoping for?
Over the next 30 years, inflation is 0% - 1% annually.
Over the next 30 years, inflation is 5% - 6% annually.
Over the next 30 years, inflation is 10% - 11% annually.
Over the next 30 years, inflation is 15% - 16% annually.
Also, Denninger doesn't believe that he knows what the total June 2011 treasury holdings of China & Japan will be, unlike others who shall not be named...
You mean Robert Wenzel who wrote "Fed Passes China in Treasury Holdings (Soon Fed will hold more than China and Japan Combined)"